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WaMu's Shareholder Dis

At least TPG's investors have someone looking out for their interests. The private-equity group run by David Bonderman is getting a sweetheart deal in the $7 billion capital raising it is leading for Washington Mutual. TPG's bouquet includes WaMu stock at a 33% discount, in-the-money securities that are convertible into stock and warrants to buy shares. Minority shareholders are left paying for the thrift's largesse.

WaMu will issue TPG and a handful of its existing large institutional shareholders $1.5 billion of new...